He’s Up! He’s Down! No, He’s Up!
Sometimes the market wants to tell you something so badly that it practically
screams it in your ears.
Not to say that it’s telling the truth when it does this.
Nevertheless, when the market yells at you, you’d better listen and think.
One of the setups that makes my ears ring, occurs when a technical
pattern fails, but then somehow miraculously heals itself overnight.
The blow-by-blow account of Aurora Biosciences
(
ABSC |
Quote |
Chart |
News |
PowerRating) over the
past few days reminds me of the announcers in those old broadcasts of
world heavyweight prize fights in the 30s and 40s–“he’s up!. . .he’s
down!. . .no, he’s up!
-
Thursday, ABSC broke out above a five-day pennant, but then the
pattern failed as ABSC closed at the lows of its two-week trading range by the
end of the day on a huge-volume spike. The question at that point was whether
ABSC would find support at the level of its early-June breakout above its
14-week base. -
Early Friday, the answer seemed to be “NO,” as ABSC
plunged below that important support level at the open. But throughout the
course of the trading session, ABSC fought its way back and managed to close
above the point of no return. -
Monday, we saw follow-through off Friday’s reversal.
Please, this is no prediction, but ABSC seems to be saying very
loudly that it wants to go up, at least in the short term. It could very well do
the opposite and you shouldn’t be surprised by any outcome, but this is the type
of setup I wouldn’t mind finding every day.
See you tomorrow,
Eddie